Buying a home is one of the most exciting steps for many newcomers to Canada. It represents stability, long-term investment, and a place to call your own. However, the Canadian mortgage process can feel overwhelming, especially if you’ve recently arrived and are still building your credit history and financial foundation.

This guide outlines everything immigrants and newcomers need to know about qualifying for a mortgage in Canada — from how to apply and what documents you’ll need, to available programs designed to support new Canadians in purchasing their first home.

Can Immigrants Get a Mortgage in Canada?

Yes, absolutely. You can apply for a mortgage in Canada regardless of whether you are a temporary resident, permanent resident, or in the process of becoming one. Many lenders, including major banks, credit unions, and mortgage brokers, offer specific mortgage products for newcomers.

Types of Newcomer Status That Can Apply for a Mortgage

• Permanent Residents (PRs): PRs are treated similarly to Canadian citizens and usually qualify for most traditional mortgage products.
• Refugees and Protected Persons: May also qualify depending on employment history and credit profile.
• Temporary Residents: Work permit or study permit holders may still be eligible, although with more restrictions.
• Non-Residents: Typically require a larger down payment (often 35%) and must meet more stringent requirements.

Common Challenges for Newcomers

• Lack of Canadian Credit History

Canadian lenders rely heavily on credit reports. Without an established credit score, banks may view your file as high-risk — even if you were financially responsible in your home country.

Tip: Apply for a secured credit card as soon as you arrive and use it regularly. To start raising your credit score, pay it off in full.

• Employment Verification

Newcomers may have difficulty proving stable employment, especially if they’re self-employed or working part-time.

Tip: Most lenders want to see at least 3 months of stable income. A letter of employment, pay stubs, and recent bank statements can help strengthen your application.

• Down Payment Requirements

The minimum down payment in Canada is 5% for homes under $500,000. However, newcomers with limited credit history may be asked to provide a larger down payment, especially if they are temporary residents.

Tip: Gifts from immediate family are allowed and must be documented. Some lenders also accept international funds with proper verification.

Mortgage Programs for Newcomers

Many financial institutions in Canada have special programs tailored to help new immigrants become homeowners. These programs typically allow more flexibility in assessing credit and employment history.

Key Features:

• Low down payment options starting at 5%
• No or limited Canadian credit history required
• Eligibility for insured mortgages (CMHC, Sagen, Canada Guaranty)
• Access to professional mortgage advice

Examples of Lenders Offering Newcomer Programs:

• First National – “New to Canada Program”
• Scotiabank – “StartRight Program”
• TD – “New to Canada Mortgage”
• Merix – “Newcomers to Canada Program”

Always compare options, as each lender’s requirements and benefits vary.

Documents You’ll Typically Need

To apply for a mortgage in Canada as a newcomer, you should be prepared to provide:

• Proof of immigration status (e.g., PR card, work permit)
• Canadian government-issued ID
• Proof of income (employment letter, recent pay stubs)
• Proof of down payment source
• International credit history (if available)
• Bank statements
• SIN (Social Insurance Number)

If you’re using foreign funds for a down payment, you’ll need documentation showing the transfer, currency exchange, and origin of the funds.

Mortgage Insurance for Newcomers

If your down payment is less than 20%, you’ll need mortgage insurance through one of Canada’s three providers. The premiums are added to your mortgage balance, not paid up front.

These providers consider newcomer applications even without a Canadian credit history, as long as you meet employment and income criteria.

Tips for Success

1. Start Building Credit Early
   Even small actions like getting a cell phone plan or utility bills in your name can help establish credit.
2. Work with a Mortgage Broker
   Brokers have access to a variety of lenders and can help you find one that specializes in newcomer mortgages.
3. Get Pre-Approved
   This shows real estate agents and sellers that you’re serious and financially ready to buy.
4. Understand All Costs
   Set aside money for more than simply the down payment:
   • Legal fees
   • Land transfer tax
   • Home inspection fees
   • Mortgage insurance
   • Moving expenses
5. Don’t Rush
   Take your time to research neighbourhoods, lenders, and the responsibilities of homeownership in Canada.

Buying your first home as a newcomer to Canada is achievable — even without a long credit history or years of residency. With the right planning, professional advice, and financial discipline, many immigrants successfully transition from renting to owning within just a few years of arrival.

Take the time to understand your options, get organized, and seek help from professionals familiar with the unique needs of newcomers. Homeownership in Canada is within reach — and it can be one of the most rewarding steps in your new life here.